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Your friend is very good at currency forecasting and predicts that the Euro will appreciate from A$1.50 to A$1.56. To take advantage of this opportunity,
Your friend is very good at currency forecasting and predicts that the Euro will appreciate from A$1.50 to A$1.56. To take advantage of this opportunity, you decided to sell put options with an exercise price of A$1.54 at a premium of A$.02. If the spot rate at the option's maturity turns out to be A$1.55, what is your profit/loss per unit (assuming the buyer of the option acts rationally)? A. A$-0.02 B. A$-0.01 C. A$0.00 D. A$0.01 O E. A$0.02
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